Tag Archives: FanDuel

FTC Pressure Forces DFS Giants to Cancel Merger Plans

Last November, FanDuel and DraftKings announced their plan to merge, and sought to combine the two largest operators of paid fantasy daily sports. The agreement came amidst scrutiny from several state attorneys general and other regulators over the legality of daily fantasy sports. On July 13, 2017, the two daily fantasy sports giants announced they would no longer pursue their plan to join forces. The most recent announcement came after the FTC filed a lawsuit against DraftKings and FanDuel in June, saying the two…

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Update: Federal Judge Grants Temporary Restraining Order Blocking FanDuel DraftKings Merger

U.S. District Court Judge Ketanji Brown issued a temporary restraining order preventing DraftKings and FanDuel from completing their merger as the Federal Trade Commission (FTC) seeks a preliminary injunction. The proposed merger would keep both websites operational. DraftKings CEO Jason Robbins will be the CEO of the merged company and FanDuel CEO Nigel Eccles will become Chairman of the Board. Even though both companies will still be operating and consumers will have a choice of which to use, the FTC argues the merger will…

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FTC Seeks Injunction on FanDuel and DraftKings Merger

The Federal Trade Commission (FTC) and the attorney generals for California and the District of Columbia will file a complaint to prevent the merger of FanDuel and DraftKings while the FTC is reviewing the merger process. FanDuel and DraftKings make up 95 percent of the daily fantasy sports market. The FTC argues the merger would “deprive customers of the substantial benefits of direct competition.” The companies announced the merger in November 2016, in large part to cut their legal bills. At the time, the…

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DraftKings Sued by Fantasy Sports Cable Network

DraftKings has gotten a lot of negative attention in the past year, and its luck doesn’t seem to be changing. On September 23, 2016, Anthem Sports & Entertainment Corp sued DraftKings in a New York court for failing to pay over $4 million in a television programming deal. In August 2015, Anthem Sports, as the owner of the fantasy sports cable network Fantasy Sports Network, Inc., claimed it made a television programming deal in which DraftKings agreed to pay Anthem $4.5 million to produce daily…

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FanDuel Argues First Amendment Protects Use of NCAA Players’ Names and Likenesses

On Tuesday, June 26, 2016, FanDuel asked an Indiana federal court to dismiss it from a putative class action accusing daily fantasy sports operators of profiting off the unauthorized use of former NCAA athletes’ names and likenesses. It contended that its use of the names and likenesses was protected by the First Amendment. FanDuel has had trouble with using the NCAA as a portion of its daily fantasy sports platform before, as back in March it had to reach a deal with the NCAA agreeing…

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DraftKings Automated Text Class Action Continues

DraftKings has been subject to ongoing legal scrutiny and the legality of online fantasy leagues hosted by companies like DraftKings and FanDuel has been debated over the past years. Along with questions surrounding potential anti-gambling law violations, stakeholders are also questioning the truthfulness of the aggressive advertisement tactics employed. In October 2014, Izsak expressed his displeasure with DraftKings advertising tactics by filing a class action suit in Illinois federal court. He claims that on September 1, 2014, he received an unsolicited text message from DraftKings,…

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Illinois Fantasy Sports Bill Stalls in House Heading into Summer

The Illinois state legislature wrapped up its spring session on Tuesday, May 31, 2016, and came with it the disappointment of many an avid daily fantasy sports player, as a proposed bill regulating the fantasy industry failed to be called to a vote before the end of the session. The bill, which had already passed in the Illinois Senate, seeks to allow DFS giants DraftKings and FanDuel to legally operate throughout the state under specific regulations. Some of those potential restrictions include limiting DFS games

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Class Action Suit From College Athletes Against Fantasy Sports Continues in Federal Court

On Wednesday, May 18, 2016, former NCAA athletes moved their lawsuit against major fantasy sports sites FanDuel and Draftkings to Indiana federal court. The lawsuit was initiated earlier this month when a group of former athletes sued FanDuel and Draftkings over the unauthorized use of the players’ names and likeness for fantasy sports betting. The class action alleges that the fantasy sports sites used the players’ names and likenesses to promote fantasy college sports contests for which they charged fees and generated about $3 billion.…

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Refereeing Daily Fantasy Sports Industry: Missouri Becomes Sixth State to Pass Legislation

Amid ongoing Daily Fantasy Sports (DFS) scrutiny across the United States, Missouri lawmakers have passed a bill to legalize and regulate the industry. On Thursday, May 12, 2016, the Missouri House of Representatives signed onto the Missouri Senate’s version of the bill titled “Missouri Fantasy Sports Consumer Protection Act,” HB 1941, which now awaits approval by Governor Jay Nixon. Under the bill, DFS will be exempt from existing gambling law, regulated by the Missouri Gaming Commission, but operators will be required to obtain…

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Fantasy Sports Considered Illegal Gambling by Two More Attorneys General

Alabama and Tennessee can be added to the list of states with attorneys general who do not believe daily fantasy sports are legal under their state law. On April 5, 2016, the Alabama Attorney General issued a press release reporting he delivered cease and desist letters to FanDuel and Draft Kings. The two leagues have until May 1, 2016 to stop operating in Alabama. According the Attorney General Luther Strange, “paid daily fantasy sports contests are in fact illegal gambling under Alabama law.” Tennessee Attorney

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